ICAR AIEEA-PG / PGS Food Industry Management, Costing & Entrepreneurship: practice questions

1 · Structure of the processed-food industry · easy

What is a co-packer in the food industry?

1. A government agency that inspects packaging lines
2. A maker of products for other brands
3. A farmer who packs fresh produce in the field
4. A retailer that sells only its own private-label goods

2 · Structure of the processed-food industry · medium

Which factor has most driven growth in demand for processed and packaged foods in many middle-income countries?

1. Larger households cooking all meals from raw produce
2. Urbanisation with rising incomes and modern retail
3. A steady fall in the number of supermarkets
4. A decline in women's participation in paid work

3 · Raw-material procurement and contract supply · medium

A dairy pays 300 currency units per kg of fat and 150 per kg of SNF. What is the payment for 1000 kg of milk with 4.0% fat and 8.5% SNF?

1. 37 500
2. 24 750
3. 12 750
4. 12 000

4 · Raw-material procurement and contract supply · medium

What is side-selling in contract farming?

1. Farmers selling contracted produce elsewhere
2. Processors selling surplus produce to other processors
3. Farmers selling produce at roadside stalls before harvest
4. Exporters selling the same product in several countries at once

5 · Inventory and cold-chain logistics for food · medium

Why are some fruits not stored at 0 to 2 °C like most chilled foods?

1. They suffer chilling injury at low temperatures
2. They freeze solid at 2 °C
3. They ripen faster in the cold
4. They become unsafe to eat below 5 °C

6 · Marketing and branding of processed foods · medium

Why are nutrition and health claims on food labels regulated in many jurisdictions?

1. To make all foods carry the same claims
2. To prevent foods from listing their ingredients
3. To ensure they are truthful and substantiated
4. To allow any claim that increases sales

7 · Export of processed foods · medium

Under the Incoterm FOB, when does risk pass from seller to buyer?

1. When the goods leave the seller's factory gate by lorry
2. When the goods arrive at the buyer's own warehouse
3. When the buyer pays the invoice in full to the seller
4. When goods are on board at the port of shipment

8 · Export of processed foods · medium

Which is a common reason for border rejection of spices and nuts in importing markets?

1. Salmonella or aflatoxin contamination
2. Too much vitamin C in the product
3. Packaging printed in two colours
4. Use of recycled cardboard cartons

9 · Project report and financial appraisal of a food unit · medium

When is a project acceptable by the IRR criterion?

1. When its payback is longer than its life
2. When its IRR equals zero
3. When its IRR exceeds the cost of capital
4. When its IRR is below the inflation rate

10 · Project report and financial appraisal of a food unit · medium

What does a benefit-cost ratio above 1 indicate?

1. The payback period is under one year
2. Discounted benefits exceed discounted costs
3. The project needs no loan
4. The project has no fixed costs